In a message to Twitter followers on Monday, the founder and CEO of MicroStrategy – Michael Saylor – announced that he facilitated a meeting with major US Bitcoin miners AND Tesla (NASDAQ:TSLA) CEO, Elon Musk. The attendees agreed to create an eco-friendly consortium called the Bitcoin Mining Council to advance environmental sustainability and transparency within the crypto-mining space.
Since then both companies have lost hundreds of millions in US dollars beginning on May 12th when Musk slammed that digital BTC payment deal for his Tesla e-automobiles in reverse after less than a month – crashing the junked idea into the cryptocurrency market causing massive wreckage to investor portfolios and coin valuations alike.
Musk’s reasoning for the Bitcoin-car-buying ban was due to his concerns around alleged “increasing use of fossil fuels for Bitcoin mining.” Bitcoin produces new coins using an energy-intensive process called “Proof of Work” that requires a lot of electricity to run massive computer server farms that solve complex encryption puzzles to score new Bitcoins.
In this tweet, Musk then raised concerns around such ecological arrangement, which was heard ‘round the crypto-world.
Additionally, the timing of this eco-centric crypto-mining consortium could be extremely beneficial to US-based outfits. Late last week, the Chinese State Council announced that it has stepped up its crackdown on cryptocurrencies, forcing several massive Bitcoin mining operations to shutdown activities in China and quickly try to relocate to other countries.
It’s worth noting that the action of the Chinese government seems to have nothing to do with the environmental impact of cryptocurrency mining and everything to do with cryptocurrency control. The steps taken by China are a blatant attempt by the leaders of that command economy to eliminate decentralized cryptocurrency – a direct threat and competitor to the state’s newly launched and wholly owned central bank digital currency, the digital yuan.
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Source: Cryptocurrency - investing.com
